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Google Profits Up Fivefold

Google reports a fivefold increase in profits in the first quarter, a reflection of the strength of the online advertising market.
Google Inc. on Thursday reported a fivefold increase in profits in the first quarter, a reflection of the strength of the online advertising market.

The Mountain View, Calif., search giant said net income for the quarter ended March 31, based on generally accepted accounting principles, was $369 million, or $1.29 a share, compared with $64 million, or 24 cents a share, for the same period a year ago. Revenues for the quarter were $1.26 billion, a 93 percent increase from the previous year.

"This was a very strong quarter for Google," Eric Schmidt, chief executive for Google, said in a statement. "We continue to execute well and we have been able to take full advantage of the growth in online advertising."

Internet advertising revenue as a whole last year increased by 32 percent to just under $9.6 billion, compared with $7.3 billion in 2003, according to the Interactive Advertising Bureau.

Google's own sites, which depend heavily on paid search results and on users clicking on ads, generated $657 million, or 52 percent of the company's total revenues. This represented a increase of 116 percent over the same quarter a year ago.

Revenues generated from Google's partner sites through its AdSense programs contributed $584 million, or 47 percent of revenues, a 75 percent increase over partner-related revenues a year ago.

As of March 31, Google had 3,482 full-time employees, up from 3,021 as of the end of the fourth quarter last year.